TO: Proximity Mobile Team
FROM: Nick Cortina
DATE: February 26, 2010
SUBJECT: T-Mobile Strategy Analysis
Here is my T-Mobile strategy analysis. Although T-Mobile is not the dominating mobile telephone provider in the United States, they are the 7th largest mobile network operator in the world. They rank ahead of American services such as Verizon, Sprint, and AT&T (Wikipedia, 2010). While T-Mobile might not be the most popular American provider, a technology-driven Generation Y still exists internationally.
Profile T-Mobile is a mobile telephony provider, owned by Deutsche Telekom (the T stands for Telekom). Hamid Akhavan is the current CEO. The U.S Company was previously known as Voice Stream Wireless or Powertel and was bought in 2001 by Deutsche Telekom for $50.7 billion (Wikipedia, 2010). In 2002, Deutsche Telekom changed their name from D1 to T-Mobil with the English version becoming T-Mobile. Some Germans will still refer to T-Mobile as D1. Their annual revenue was around $17 billion in the United States last year. T-Mobile is a well-known international brand that has sponsored popular events such as the World Cup. Events like the World Cup are ideal places to attract international Gen-Y audiences.
In T-Mobile’s home market, (Germany) they are the largest mobile phone operator with almost 36 million subscribers (Wikipedia, 2010). Globally, T-Mobile has about 150 million subscribers. In the United States, T-Mobile is currently the 4th largest wireless carrier with 34 million subscriptions (Wikipedia, 2010). Their annual revenue was around $17 billion in the United States last year (Wikipedia , 2010).
Competitive Landscape
Most T-Mobile subscribers live all around the world. A subscriber in Germany and Czech Republic will most likely have different competitors than a T-Mobile user in America. Therefore T-Mobile is faced with the challenge of surpassing their competitors all over the world while adhering to the norms of all the countries they attempt to persuade. For example, in the EU cell providers are not locked into partnerships with handset manufacturers. Whereas in the U.S they are. With a 2009 revenue of $17 billion, T-Mobile ranks 4th against their American competitors (Wikipedia, 2010). T-Mobile is, so far, the only U.S cell provider to embrace the Google model of having the option of buying the phone without a contract. This allows the consumer to shop around and sets up a landscape that is shaped by rivalry among handsets. In order to keep up, they offered the T-Mobile G1 smart phone in 2008 that included Google talk, calendar, maps, etc. The G1 has given T-Mobile the ability to compete with other “smart phones” such as the Apple I phone from AT&T and the Blackberry from Verizon.
Strategy
T-Mobile’s strategy is to maintain the power of its global involvement. In order to remain one of the largest providers internationally they must continue to compete with the new additions of competitors all around the world by offering a “killer experience” (Business Week, 2010). T-Mobile must focus on keeping things fresh, current, and adjust their sponsorship and advertising according to the many different countries they are targeting. (A “killer experience” for their consumers). T-Mobile should do everything it can to push the US landscape towards the EU model. This would allow accepting of Nexus One without a locked in subsidized handset contract. Young professionals who use T-Mobile in New York can easily fly to London and be able to log onto a European network.
Gen-Y Implications
T-Mobile is not struggling in any sense, but any type of lost interest from the Gen- Y population can be detrimental. T-Mobile must continue to satisfy a technology savvy generation not only in the U.S but internationally as well. With the ability now to reach people so easily on a wireless network, international interaction has become a lot easier. Since T-Mobile is well-established globally it gives them an edge over other U.S competitors. Technologically savvy Generation Y users may talk to friends and family overseas who also own T-Mobile phones. Certain plans may offer free service overseas when both users are T-Mobile subscribers.
Nick Cortina- T-Mobile Strategy Report
TO: Proximity Mobile Team
FROM: Nick Cortina
DATE: February 26, 2010
SUBJECT: T-Mobile Strategy Analysis
Here is my T-Mobile strategy analysis. Although T-Mobile is not the dominating mobile telephone provider in the United States, they are the 7th largest mobile network operator in the world. They rank ahead of American services such as Verizon, Sprint, and AT&T (Wikipedia, 2010). While T-Mobile might not be the most popular American provider, a technology-driven Generation Y still exists internationally.
Profile
T-Mobile is a mobile telephony provider, owned by Deutsche Telekom (the T stands for Telekom). Hamid Akhavan is the current CEO. The U.S Company was previously known as Voice Stream Wireless or Powertel and was bought in 2001 by Deutsche Telekom for $50.7 billion (Wikipedia, 2010). In 2002, Deutsche Telekom changed their name from D1 to T-Mobil with the English version becoming T-Mobile. Some Germans will still refer to T-Mobile as D1. Their annual revenue was around $17 billion in the United States last year. T-Mobile is a well-known international brand that has sponsored popular events such as the World Cup. Events like the World Cup are ideal places to attract international Gen-Y audiences.
In T-Mobile’s home market, (Germany) they are the largest mobile phone operator with almost 36 million subscribers (Wikipedia, 2010). Globally, T-Mobile has about 150 million subscribers. In the United States, T-Mobile is currently the 4th largest wireless carrier with 34 million subscriptions (Wikipedia, 2010). Their annual revenue was around $17 billion in the United States last year (Wikipedia , 2010).
Competitive Landscape
Most T-Mobile subscribers live all around the world. A subscriber in Germany and Czech Republic will most likely have different competitors than a T-Mobile user in America. Therefore T-Mobile is faced with the challenge of surpassing their competitors all over the world while adhering to the norms of all the countries they attempt to persuade. For example, in the EU cell providers are not locked into partnerships with handset manufacturers. Whereas in the U.S they are. With a 2009 revenue of $17 billion, T-Mobile ranks 4th against their American competitors (Wikipedia, 2010). T-Mobile is, so far, the only U.S cell provider to embrace the Google model of having the option of buying the phone without a contract. This allows the consumer to shop around and sets up a landscape that is shaped by rivalry among handsets. In order to keep up, they offered the T-Mobile G1 smart phone in 2008 that included Google talk, calendar, maps, etc. The G1 has given T-Mobile the ability to compete with other “smart phones” such as the Apple I phone from AT&T and the Blackberry from Verizon.
Strategy
T-Mobile’s strategy is to maintain the power of its global involvement. In order to remain one of the largest providers internationally they must continue to compete with the new additions of competitors all around the world by offering a “killer experience” (Business Week, 2010). T-Mobile must focus on keeping things fresh, current, and adjust their sponsorship and advertising according to the many different countries they are targeting. (A “killer experience” for their consumers). T-Mobile should do everything it can to push the US landscape towards the EU model. This would allow accepting of Nexus One without a locked in subsidized handset contract. Young professionals who use T-Mobile in New York can easily fly to London and be able to log onto a European network.
Gen-Y Implications
T-Mobile is not struggling in any sense, but any type of lost interest from the Gen- Y population can be detrimental. T-Mobile must continue to satisfy a technology savvy generation not only in the U.S but internationally as well. With the ability now to reach people so easily on a wireless network, international interaction has become a lot easier. Since T-Mobile is well-established globally it gives them an edge over other U.S competitors. Technologically savvy Generation Y users may talk to friends and family overseas who also own T-Mobile phones. Certain plans may offer free service overseas when both users are T-Mobile subscribers.
References
Akhavan, H. (2010). T-Mobile’s Innovation Strategy. Retrieved from http://www.businessweek.com/mediacenter/video/innovation/738fbb4328c0b0bb77730d2639d22b2bbc874433.html
Hinman, R. (2008). Can T-Mobile become the heroic mobile carrier we need? Retrieved from http://www.businessweek.com/innovate/content/oct2008/id2008101_342142.htm
Wikipedia. (2010, February 2). T-Mobile. Retrieved February 28, 2010 from http://en.wikipedia.org/wiki/T-Mobile